SMS CO., LTD. FY03-15 Presentation material for IR

SMS CO., LTD.(Securities Code: 2175 / TSE1 )

Presentation Materials for Investor RelationsFinancial Results Summary for the Fiscal Year Ended March 31, 2015 (the 12th Fiscal Year)

April 30, 2015

© Copyright SMS CO.,LTD.

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Table of Contents

1 FY03/15 Consolidated Financial Results

P11-P232 FY03/16 Strategy

P25-P333 FY03/16 Consolidated Financial Forecasts

4 FAQ P35-P62

© Copyright SMS CO.,LTD. 2

Table of Contents


2 FY03/16 Strategy

3 FY03/16 Consolidated Financial Forecasts

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P25-P33

4 FAQ P35-P62


FY03/14 Actual

FY03/15Forecasts*1

FY03/15 Actual

YoY Change vs. Forecasts

Net Sales 12,046 15,658 15,056 +25％ -4％

Operating Income 1,730 1,904 2,079 +20％ +9％

Ordinary Income 2,340 2,549 2,693 +15％ +6％

Net Income 1,380 1,709 1,824 +32％ +7％

3

FY03/15 Consolidated Financial Results

Both net sales and incomes increased YoY. Incomes exceeded forecasts.

1

P/L Statement (¥ million)

*1: Revised forecasts which were announced on June 2, 2014


Trends in Net Sales (LHS) and Ordinary Income (RHS)*2

1 Historical Financial Results

Achieved growth in both net sales and ordinary income for 11 consecutive years*1 since the establishment of the Company.

0.5 3.8 8.315.4

27.1

51.7

71.7 76.186.9

101.8

120.4

150.5

-0.05 0.4 1.0 2.6 4.1

12.3 12.615.3

17.319.9

23.426.9

-8

0

8

16

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32

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64

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第1期第2期第3期第4期第5期第6期第7期第8期第9期第10期第11期第12期FY03/04 FY03/05 FY03/06 FY03/07 FY03/08 FY03/09 FY03/10 FY03/11 FY03/12 FY03/13 FY03/15FY03/14

：Net Sales(in black font) ：Ordinary Income(in blue font)

(Net Sales, ¥100 million) (Ordinary Income, ¥100 million)

*1：Excludes the first fiscal year*2 ：Figures up to FY03/10 are on a non-consolidated basis while figures from FY03/11 are on a consolidated basis


Analysis of Year-on-Year Changes

5

1

Major services such as Kaipoke and career-related services increased steadily.

Year-on-Year Changes (¥ million)FY03/15Actual

FY03/14Actual Differences Analysis of Differences

Net Sales 15,056 12,046 +3,010

• Kaipoke‘s price revision associated with renewal of management support services contributed significantly to an increase in net sales

• Almost all services including career-related services increased steadily YoY

Operating Income 2,079 1,730 +348 • Operating income in almost all major services

increased YoY

Ordinary Income 2,693 2,340 +353

• Equity method investment gains from M3 Career increased YoY

• Impairment of HSP was reported

Net Income 1,824 1,380 +444 • Extraordinary income from acquisition of eChannelling was reported


Variance Analysis of Actual Results and Forecasts1

Differences between Actual Results and Forecasts (¥ million)

Incomes exceeded forecasts.

Actual Forecasts*1 Differences Analysis of Differences

Net Sales 15,056 15,658 -601• Recruiting agent for nurses was slightly below

forecasts (achieved 97% of forecasts)• There was a delay in achieving net increase of

Kaipoke’s membership compared to forecasts.

Operating Income 2,079 1,904 +175 • Costs were lower than forecasts owing to efficient use

of advertising expenses and unused budgeted costs

Ordinary Income 2,693 2,549 +143

• Equity method investment gains from M3 Career exceeded forecasts

• Impairment of HSP was reported

Net Income 1,824 1,709 +115 -

6*1：Revised forecasts which were announced on June 2, 2014


Net sales up 61% YoY. Almost all services, including Kaipoke increased significantly.

1 Nursing Care Segment (Full-year)

Highlights

_(¥ million) FY03/14 FY03/15 YoY Change

Recruiting Agent 838 1,090 +30％Media 1,242 1,591 +28％

New Businesses 756 1,884 +149％Total 2,838 4,566 +61％

Year-on-Year Comparison of Net Sales (Former Classification)Year-on-Year Comparison of Net Sales (Daily Use vs. Occasional Use)

(¥ million) FY03/14 FY03/15 YoY Change

Daily Use 633 1,617 +155％

Occasional Use 2,204 2,948 +34％

Total 2,838 4,566 +61％

• Net sales of Kaipoke increased significantly YoY due to a price revision associated with renewal of management support services

• Kaipoke’s membership achieved a net increase in March 2015.

• Net sales of recruiting agent increased significantly YoY– The number of consultants increased

(# of consultants on average: 17 in FY03/14 to 29 inFY03/15)– Productivity declined YoY due to an increase in the number of newly-recruited consultants.

(# of agreements concluded per consultant /month：6.5 in FY03/14 to 5.0 in FY03/15• Net sales of recruiting ads for nursing care professionals increased YoY owing to an increase in orders for

products that comprehensively support recruiting activities, and enhanced media competitive advantage• Net sales of new services increased YoY, including in the information portal of housing for seniors and the home-

delivered meal search site 7

Dai

ly U

seO

ccas

iona

l Use


Net sales up 9% YoY. Career-related services increased steadily.

8

1 Medical Care Segment (Full-year)

Highlights


Recruiting Agent 6,746 7,450 +10％Media 1,462 1,563 +7％

New Businesses 724 693 -4％Total 8,933 9,707 +9％


Daily Use 868 805 -7％

Occasional Use 8,065 8,902 +10％

Total 8,933 9,707 +9％

• Net sales decreased slightly YoY, but profit level improved owing to cost controls

• Net sales of recruiting agent for nurses increased YoY– The number of consultants increased

(# of consultants on average: 225 in FY03/14 to 265 in FY03/15)– Productivity declined YoY due to broad area penetration strategy and increase of the number of newly-hired

consultants.(# of agreements concluded per consultant / month: 4.0 in FY03/14 to 3.5 in FY03/15)

• Net sales of recruiting agent for paramedics, excluding nurses, increased steadily YoY

Year-on-Year Comparison of Net Sales (Former Classification)Year-on-Year Comparison of Net Sales (Daily Use vs. Occasional Use)

Dai

ly

Use

Occ

asio

nal U

se


Year-on-Year Comparison of Net Sales

iHealth (Taiwan), eChannelling (Sri Lanka), and EHEALTHWISE (Australia) contributed to an increase in net sales.

9

1 Global Segment (Full-year)

_FY03/14 FY03/15 YoY Change

Total 270 741 +174％

Highlights• Taiwan*1 : Net sales of iHealth, which operates a prescription drugs delivery increased YoY. • Sri Lanka*2: eChannelling, which operates a doctor’s appointment service, contributed to an increase in net sales. • Australia*3: EHEALTHWISE, which provides medical bill e-claiming solutions, contributed to an increase in net sales.

*1: Consolidated subsidiary since May 2013, included in consolidated P/L since Q2 FY03/14 *2: Consolidated subsidiary since June 2014, included in consolidated P/L since Q2 FY03/15*3: Consolidated subsidiary since January 2014, included in consolidated P/L since Q1 FY03/15



2 FY03/16 Strategy


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4 FAQ P35-P62


Our Mission2

We create values and contribute to society by providing an“information infrastructure for an aging society.”

SMS stands for “Senior Marketing System.”


Social insurance system

Demographics

People’s interest

Macroeconomic trends

Information Asymmetry

2

Ever since the establishment of SMS, we have believed that the “information infrastructure for an aging society” would develop into a major industry boosted by trends in the social background.

Gaining Recognition as an Industry

Social Background

etc.

“Information infrastructure

for an aging society ”

Telecommunications

Electronics

Medical careFoods

Nursing careHousing

Publishing

Education

IT

Automobiles

Emergence of a new industry


2 Future Image

Pharmacists ？ CommoditiesHealthcare？

Factoring

？ Helpers

Mealdelivery

Real estates

？

Welfare vehicles

Rehabilitationgoods Nursing care

goods

Housing

Healthclubs

？

Travels？

Grandchildren ?

Students

Caremanagers

PT/OT Doctors

Nurses

？ Nutritionists

？？

？

Facilitycare

？

HospitalsHome-visit

nursing

Clinics

Dispensaries

？？

？？

？？

Medicaldevices

？

Education agenciesCommunication

carriers

？

Healthfoods

？

Warehouses

Pharmaceuticalcompanies

？

Nursing care Disease

Homecare

Related-Business Operators

Service Operators

Professionals

End Users

Current Future

Pharmacists ？ CommoditiesHealthcare？

Factoring

？ Helpers

Mealdelivery

Real estates

？

Welfare vehicles

Rehabilitationgoods Nursing care

goods

Housing

Healthclubs

？

Travels？ Funeral

Grandchildren ?

Students

？

Care managers

PT/OT Doctors

Nurses

？ Nutritionists

？？

？Homecare

Facilitycare

？

HospitalsHome-visit

nursing

Clinics

Dispensaries

？？

？？

？？？？

Medicaldevices

？

Education agencies

Communicationcarriers

？

Healthfoods

？

Warehouses

Pharmaceuticalcompanies

？

Nursing care Disease

By providing a variety of information and services to end-users, professionals and service operators associated to the aging society, and by organically linking those information and services, we aim to create an ecosystem of an “information infrastructure for an aging society.”


Market Segments

*1 : Healthcare-related businesses which are not covered by long-term care and medical care insurances*2 : Businesses related to daily life in the aging society

We reclassified our market segments as nursing care, medical care, career, healthcare, senior life, and global.

2

Healthcare*1

Senior Life*2

Career

etc.

Global

Medical CareNursing Care


SMS Basic Strategy

Identify a strategically important customer. Increase the targeted customer base and make strong connections with them by sticky,

“Daily-use” services. Develop a variety of services based on the connections, creating an ecosystem.

2

New Service

New Service

Recruiting Agent

Recruiting Ads

Information portal on housing for seniors

Certification Course Information

Customer Base Strong Connections

ServiceOperators End Users

Professionals

Management information systemsOnline communities Information portals


2 Growth Scenario

Now Future

①Growth of career-related businesses

②Growth of Kaipoke

③Growth of new businessesNursing Care, medical care, healthcare, senior life, and global

Career-related businesses will continue to grow steadily. Kaipoke will grow as the second pillar. New businesses will be developed and expanded continuously in each market segment.

© Copyright SMS CO.,LTD. 17Needs of

Processionals

Covering all medical and nursing care professionals

Enhancing competitive advantages through

continuous growth centered on recruiting agent services

Providing exhaustive services to meet the

needs of service operators

Needs of Service Operators

・Improving ES and CS・Developing organization, human capital management, and culture

Extending scope of services

Expanding scope of services

Aim to realize long-term and continuous growth in the career-related businesses by developing an optimal organization and expanding the scope of each service.

① Growth of Career-related Businesses2

RAD*2 fornurses

RAG*1 for nurses

Others

RAG*1 forPT/OT*3

RAD*2 fornursing careprofessionals

*1 : RAG stands for Recruiting Agent *2 : RAD strands for Recruiting Ads*3 : PT/OT/ stands for Physical Therapist, Occupational Therapist, respectively


Aim for a membership share of 30% and net sales of ¥10 billion in FY03/21. Accelerate growth by enhancing communication, expanding peripheral services, and covering

new service types.

② Growth of Kaipoke2

Enhancing communication

Expanding peripheral services

Covering new service types

Acquire new clients and promote service use through door-to-door sales, web advertising and call center promotions

Expand peripheral services such as factoring, purchasing, and consulting

Roll out management support services to new service types such as home-visit nursing

Current(FY03/15)

FY03/21

Past

The No.1management support service

Membership share: 30%Net sales: ¥10 billion

Insurance claim software

Renewal to “management support services”

Membership share: 12%Net sales: ¥1.5 billion*1

*1: Price was revised on October 2014 accompanying the service renewal. The revised price was applied from the 2H of FY03/15.


Accelerate the development, expansion and management of businesses, as well as the generation of synergetic effects between the businesses by making strong connections with many service operators/professionals in the nursing and medical care fields.

28％Nurses

(Com membership)420K/1,500K

(RAG registration)100K/150K

11%

Nursing students(RAD membership)

8K/70K

6%

Pharmacists(Com membership)

17K/280K

58%

Hospitals(Client hospitals of RAG for nurses)

5K/8.6K7%

Clinics(Client clinics of RAG for nurses)

7.1K/100K

40%Registered dieticians

(Com members)32K/80K

12%Small and Medium-sized

home-visit nursing care operators

(Membership)14K/114K

10%

PT/OT/ST(RAG registration)

14K/140K

55%Large-sized

nursing care operators(clients of RAD)

3%/500K per monthNursing care professionals(Com membership)

44K/1,450K(RAD site visitor)

500K/1,500K per month

42%

Care managers(Com membership)

54K/130K

MedicalCare

Nursing Care

2 ③ Growth of New Businesses - Platform -

67%


2 ③ Growth of New Businesses - Nursing Care -

Com for families with those requiring nursing care

Home-delivered meal search site

Create and expand businesses targeting service operators through the Kaipoke platform, and professionals through online community platforms.

Promote the development of new businesses while also expanding existing services targeting newly excavated end user segments.

Professionals

End Users

Service Operators

Info portal of housing for seniors


Create a variety of businesses mainly targeting service operators by considering the “Comprehensive Regional Care System” and changes in medical care policies.

2 ③ Growth of New Businesses - Medical Care -

Disease Prevention

Homemedical care

Hospital・cost reduction・conversion of beds・emergency support

Professionals

Service Operators

End Users

Local community medical care matching

・lifestyle-related disease prevention (Data Health)

・cooperation b/w businesses Clinic/Pharmacy

・cooperation b/w clinic & pharmacy


2 ③ Growth of New Businesses - Healthcare -

Healthcare

Senior Life

Online news column for active seniors

Information portal of dementia

Q&A site on health

Info of pregnancy, childbirth, and child-raising

Solutions for men's distress

Information of genetic test

Active SeniorMarket Segment

Create a variety of businesses in unique market segments and based on unique themes in both the Healthcare and Senior Life Segments.

Com for registered/non-registered dietitians

Specific themes

© Copyright SMS CO.,LTD. 23*1：As of March 31, 2015 *2：Renamed from NURSCAPE

2 ③ Growth of New Businesses – Global -

While reinforcing profit-generating businesses, expand cross-border businesses mainly in the ASEAN region based on specific themes, such as the clinic information system.

・Malaysia (Subsidiary)・Centium

Thailand (Subsidiary)

HelpingDoc(Non-consolidated subsidiary)

Singapore (Subsidiary)(Overseas headquarters)

Philippines (Subsidiary)

eChannelling (Subsidiary)

Indonesia (Subsidiary)

Regions where we currently operate*1

Senior Marketing System Korea*2

・Taiwan (Subsidiary)・iHealth (Subsidiary)

China (Subsidiary)

EHEALTHWISE(Subsidiary)



2 FY03/16 Strategy


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4 FAQ P35-P62


FY03/15Actual

FY03/16 Forecasts Differences YoY Change

Net Sales 15,056 18,881 +3,825 +25％

Operating Income 2,079 2,702 +623 +30％

Ordinary Income 2,693 3,403 +709 +26％

Net Income 1,824 2,306 +482 +26％

25

FY03/16 Consolidated Financial Forecasts

Expect to increase net sales by 25％ and net income by 26％.

3

P/L Statement (¥ million)


3 Historical Financial Results and FY03/16 Forecasts

We expect to achieve growth in both net sales and ordinary income for the 12th consecutive year*1 since our establishment.

0.5 3.8 8.315.4

27.1

51.7

71.7 76.186.9

101.8

120.4

150.5

188.8

(0.05) 0.4 1.0 2.6 4.1

12.3 12.615.3 17.3

19.923.4

26.9

34.0

-8

0

8

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第1期第2期第3期第4期第5期第6期第7期第8期第9期第10期第11期第12期第13期

：Net Sales (in black font) ：Ordinary Income (in blue font)

Trends in Net Sales (LHS) and Ordinary Income (RHS)*2

(Net Sales, ¥100 million) (Ordinary Income, ¥100 million)

*1：Excludes the first fiscal year*2 ：Figures up to FY03/10 are on a non-consolidated basis while figures from FY03/11 are on a consolidated basis

FY03/04 FY03/05 FY03/06 FY03/07 FY03/08 FY03/09 FY03/10 FY03/11 FY03/12 FY03/13 FY03/15FY03/14 FY03/16


Market Segments (as mentioned on page 14)

We reclassified our market segments as nursing care, medical care, career, healthcare, senior life, and global.

3

Healthcare*1

Senior Life*2

Career

etc.

Global

Medical CareNursing Care

*1 : Healthcare-related businesses which are not covered by long-term care and medical care insurances*2 : Businesses related to daily life in the aging society


3 Reclassification of Disclosed Segments

Redefined disclosed segments accompanying the reclassification of market segments.

Healthcare

Career

Global

Medical Care

Nursing Care

Active Senior

Overseas

Medical Care

Nursing Care

Others

Recruiting Businesses

Others

Recruiting Businesses

Former Disclosed Segments New Disclosed Segments

Senior Life


Expect to increase net sales by 20% YoY. Expect to steadily expand all services, including recruiting agent and recruiting ads.

29

3 Career Segment FY03/16 Forecasts

Highlights


• In existing recruiting agent services, new consultants are expected to contribute to an increase in net sales Recruiting agent for nurses：# of consultants on average: 265 in FY03/15 to 290 in FY03/16

• Recruiting agent for paramedics, including medical technologists but excluding nurses expects to increase steadily• Recruiting ads for nursing care professionals is expected to increase steadily owing to the shortage of nursing care

professionals

(¥ million)_FY03/15Actual

FY03/16Forecasts

YoY Change

NursingCare


MedicalCare


Total 11,604 13,959 +20％


Expect to increase net sales by 66% YoY owing to significant rise in sales for Kaipoke.

30

3 Nursing Care Segment FY03/16 Forecasts

Highlights


(¥ million)_FY03/15Actual

FY03/16Forecasts

YoY Change

Kaipoke 1,537 2,598 +69%

New Businesses 347 528 +52%

Total 1,884 3,127 +66%

• The Nursing Care Segment is expected to increase significantly owing to a price revision associated with renewal of Kaipoke’s management support services (applied from the 2H of FY03/15) and increase in the number of membership

• Services whose business models are solidified, such as the information portal of housing for seniors and the home-delivered meal search site, are expected to increase significantly

• New services for end users are expected to be developed


3

Accelerate acquisition of new clients by door-to-door sales as well as existing web marketing. Cover new service types by taking into account the “Comprehensive Regional Care System.”

Membership

【Membership Plan】

Plan for Kaipoke

Actions• We expect membership to increase to 12,000 by

March 2016• Accelerate acquisition of new clients

Accelerate acquisition of new clients by adding personnel and offices for door-to-door sales

Strengthen business establishment support services to attract more clients

• Enhance communication with existing clients Promote service use by visiting existing clients

• Cover new service types by taking into account the “Comprehensive Regional Care System”

Provide management support services to new service types such as home-visit nursing

FY03/16

12,000(as of March 1, 2016)

10,400(as of April 1, 2015)

FY03/15

Membership share30%

FY03/21・・・


Develop a variety of new services in Medical Care, Healthcare, and Global segments.

32

3 Medical Care, Healthcare, Global Segment FY03/16 Forecasts

Highlights


(¥ million)FY03/15Actual

FY03/16Forecasts

YoY Change

Medical Care 784 627 -20％

Healthcare 42 163 +280％

Global 740 1,004 +36％

• Create a variety of services mainly for operators by taking into account the “Comprehensive Regional Care System” and changes in medical care policies

• Online sales of nursing goods will focus on supporting the Career Segment by maintaining profit levels

• Create a variety of services in unique market segments and based on unique themes in both Healthcare and Senior life segments

• Expand cross-border businesses based on specific themes such as the clinic information system• Net sales are expected to increase mainly in Taiwan, Sri Lanka and Australia

Med

ical

Hea

lth-

Glo

bal

care

care


¥1¥3 ¥3

¥4¥5

¥76.8%

11.6% 12.3%13.6%

14.8%15.6%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

0

FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 (plan)

33

3 Dividends

Trends of the Amount and the Payout Ratio of Dividends*1

We plan to pay a dividend of ¥7 per share (up 40%)*1. While prioritizing investment for growth, the amount and payout ratio of dividends has been

increasing steadily every year.

*1：We conducted a 2-for-1 split of shares on January 1, 2015. The dividend amounts prior to FY03/14 are also shown based on the assumption that the stock split was already conducted.



2 FY03/16 Strategy


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Corporate Overview*14-1Company

NameCompany

Name SMS CO., LTD. (SMS=Senior Marketing System)

FoundedFounded April 4, 2003 (the 12th Fiscal Year ended March 31, 2015)

Stock MarketStock Market First Section of the Tokyo Stock Exchange (Securities Code: 2175)

LocationLocation 2 offices in Japan (SMS Career CO., LTD. : 15 offices in Japan)

Board of DirectorsBoard of Directors

Representative Director and President: Natsuki Goto *2

Directors: Hajime Kawaguchi, Tsutomu Nobunaga and Tadaharu Goto (Outside)Audit & Supervisory Board Members: Yukio Hosono (Outside), Takashi Watanabe (Outside) and Tomoki Matsubayashi

■Domestic Subsidiaries・SMS Career CO., LTD.・Pure Nurse Co., Ltd.・SMS Support Service Co., Ltd.・SMS Financial Service Co., Ltd.・SMS Medicare Service Co., Ltd.・EIR Co., Ltd. (Scheduled)

■Affiliated Companies・M3 Career, Inc. [Japan]・QLife [Japan]・Luvina Software Joint Stock Company[Vietnam]・VIET NAM HIGH TECHNOLOGY SERVICES

AND SOLUTIONS PROVIDING JOINT STOCK COMPANY(HSP) [Vietnam]

■Overseas Subsidiaries・SENIOR MARKETING SYSTEM ASIA PTE. LTD.

[Singapore]・SMS KOREA CO., LTD.・Senior Marketing System Korea Co,.Ltd.（Changed from NURSCAPE CO., LTD）・SMS Taiwan CO., LTD・iHealth [Taiwan]・SMS Shanghai CO., LTD.・SMS Beijing CO., LTD.・SENIOR MARKETING SYSTEM SDN.BHD.[Malaysia]・SMS PHILIPPINES HEALTHCARE SOLUTIONS INC.・PT. SENIOR MARKETING SYSTEM INDONESIA・SENIOR MARKETING SYSTEM (THAILAND) CO., LTD.・SMS VIETNAM CO., LTD.・eChannelling PLC [Sri Lanka]・EHEALTHWISE SERVICES PTY LTD [Australia]・Centium Software Sdn Bhd[Malaysia]

Associated Companies

*3

(24 companies)

Associated Companies

*3

(24 companies)

*1: As of end of March 2015 *2: Natsuki Goto was inaugurated on April 1, 2014 (predecessor was Shuhei Morofuji) *3: Consolidated companies only35


Historical Financial Results*1

FY03/04 FY03/05 FY03/06 FY03/07 FY03/08 FY03/09 FY03/10 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15

Net Sales 58 383 835 1,545 2,715 5,177 7,172 7,618 8,692 10,181 12,046 15,056

Cost of Sales 0 5 20 38 77 149 375 319 431 700 952 1,332

SG&A Expenses 63 326 705 1,237 2,211 3,796 5,534 5,818 6,740 7,910 9,363 11,644

Operating Income (5) 52 109 269 426 1,230 1,261 1,480 1,519 1,570 1,730 2,079

Ordinary Income (5) 49 108 269 415 1,238 1,266 1,530 1,734 1,990 2,340 2,693

Net Income (5) 31 63 157 244 719 717 876 1,004 1,226 1,380 1,824

Total Assets 59 357 566 1,016 1,806 3,118 3,645 4,672 5,716 6,948 8,406 11,421

Liabilities 55 166 196 489 822 1,410 1,266 1,430 1,579 1,794 2,331 4,497

Net Assets 4 190 369 527 983 1,708 2,379 3,242 4,136 5,153 6,074 6,923

Equity Ratio (%) 7.5 53.3 65.3 51.9 54.4 54.8 65.2 69.2 72.3 74.1 71.5 59.7

ROE (%) -124.9 31.8 22.8 35.1 32.3 53.4 35.1 31.2 27.3 26.4 24.7 28.4

DPS (¥) *2 - - - - - 1.25 1.25 2.5 3 4 5 ７

Dividend PayoutRatio(%)

- - - - - 6.8 6.8 11.6 12.3 13.6 14.8 15.6

*1: As of March 31, 2015

(¥ million)

*2: Conducted a 2-for-1 stock spilt on January 1, 2015. DPS is recalculated accordingly. 35

4-1


Historical Financial Results (Expenses Breakdown)

FY03/14 FY03/15 FY03/16Forecasts

Amount(¥ million)

Cost of Sales 952 1,332 1,609PersonnelExpenses 3,715 4,858 6,193

AdvertisingExpenses 2,410 2,518 3,111

OtherExpenses 3,236 4,267 5,264

Net Sales Ratio

(%)

Cost of Sales 7.9 8.9 8.5PersonnelExpenses 30.8 32.3 32.8

AdvertisingExpenses 20.0 16.7 16.5

OtherExpenses 26.9 28.3 27.9

(¥ million)

36

4-1


Segment Sub-segment Service name

Nursing Care

Kaipoke

New services

Medical Care －

Career

Nursing CareRAG

Nursing Care RAD

Medical Care RAG

Medical Care RAD

Health-care －

Global －

Associated Companies －

List of Services Provided*1

Information portal of dementia

Medical bill e-claiming solution for hospitals (Australia)

Management support service for nursing care operators

Com for care managers

Com for nursing care professionals

Com for families with those requiring nursing care

RAD for nursing care professionals

RAD for newly-graduated nursingcare professionals

Certification course information

RAG for care managers

RAG for PT/OT/ST

RAD for nurses RAD for newly-graduated nurses

RAG for nurses RAG for medical technologists

RAG for nutritionists

Com for nurses and student nurses

Mail order/online sales of nursing goods

Nursing /medical care seminar information

Publishing for nurses

Information portal for office managers

Regional partnership support in the nursing/medical segment

Com for nutritionists Q&A site on health

News column for active seniors

Com for nurses(South Korea)

Chronic disease medicinedelivery (Taiwan)

Doctor's appointment service for patients (Sri Lanka)

Solution service for hospitals

Hospital search site

RAGfor pharmacists

RAG and RAD for doctors and pharmacists

Hospital ManagementSystem (Vietnam)

Information of genetic test

News column regarding pregnancy, childbirth and child-raising

Information portal ofend-of-life preparations

Scholarship information portal

RAG for radiological technologists

RAG medical engineers RAG for childcare workers

*1: As of March 31, 2015

Development/sales of system for clinic information (Malaysia)

Note: RAG stands for Recruiting Agent; RAD stands for Recruiting Ads; Com stands for online community

Information portal for hospital management

Home-delivered meal search site

Information portal of housing for seniors

Com for pharmacists

Home-visit pharmacy DB

Com for managers of nursing care facilities

User review site regarding nursing care facilities

Support service to resolve social issues faced by public sectors

Drug and medicine DB for pharmacists

38

4-1


New and Former Disclosed Segments

Former Segments New Segments

Segment Sub-segment Segment Sub-segment

Nursing Care New Businesses Daily Use Nursing CareKaipoke

New businesses

Medical Care New Businesses Daily Use Medical Care -

Nursing Care

Recruiting Agent Services Occasional Use

Career

RAG*1 for nursing care

Recruiting Ads Occasional Use RAD*2 for nursing care

Medical Care

Recruiting Agent Services Occasional Use RAG*1 for medical

care

Recruiting Ads Occasional Use RAD*2 for medical care

Active Senior - Healthcare -

Overseas - Global -

*1 : RAG stands for Recruiting Agent *2 : RAD stands for Recruiting Ads

4-1


The Career Segment accounts for 77% and the Nursing Care Segment accounts for 13%. RAG*2 for nurses accounts for more than 50% of total net sales.

Sales Composition by Segment (FY03/15)

Sales Composition

Segment Net Sales(¥ billion) Composition Ratio Principal service

Nursing Care 1.88 12.5% Kaipoke (80%)

Medical Care 0.78 5.2% Mail order/online sales of nursing goods (80%)

Career 11.6 77.1% RAG for nurses (60%)

Healthcare 0.04 0.3%

Global 0.74 4.9% iHealth (50%)

*1: Numbers in () stands for composition ratio *2: RAG stands for Recruiting Agent

4-1


SMS Consolidated Group Structure*1

*1: As of March 31, 2015 *2: The indicated percentages refer to the investment ratio by SMS CO., LTD.(SMS) *3: Company name changed. Official name is Senior Marketing System Korea Co,. Ltd. *4: Became a consolidated subsidiary from an affiliated company on June 2014. Consolidated P&L from Q2. *5: Became a consolidated subsidiary from an unconsolidated subsidiary *6: SMS’s investment ratio changed owing to stock buy-back on Feb. and March 2015

The SMS Consolidated Group is composed of 25 companies including SMS CO., LTD., 20 subsidiaries and 4 equity method affiliates.

SMS Consolidated Group Structure*2 Companies consolidated in FY03/15

Net sales

Operating income

Non-operating income

Non-operating expenses

Ordinary income

Net income

SMS CO., LTD.Parent Company

Subsidiaries

Equity MethodAffiliates

SMS Beijing 100%

NURSCAPE*3 （Korea） 80%SMS VIETNAM CO., LTD. 100%

SMS Financial Service 100%

SMS KOREA CO., LTD. 80%

Pure Nurse 100%

SMS Support Service 100%

SMS Taiwan*4 90%

SMS Malaysia 100%

iHealth*5（Taiwan） approx. 47%

SMS Asia Pte. Ltd (Sing.) 100%

SMS PHILIPPINES approx. 100%

SMS INDONESIA 100%

M3 Career 49% QLife*6 approx. 45%

Luvina（Vietnam） 22%

eChannelling*4 (Sri Lanka)approx. 87%

HSP （Vietnam） approx. 33%

SMS SHANGHAI 100%

EHW (Australia) 100%

SMS Medicare Service 100%

Centium 51%SMS THAILAND*5 49%

SMS Career 100%

Income before income taxes

Gross Profit

4-1


Nur

sing

Car

e Com for families with those requiring nursing care: Anshin Kaigo June 2009

Com for care managers: Care Mane.com Sep. 2006

Management support service for nursing care operators: Kaipoke July 2006

Com for nursing care professionals: Care Tomo Oct. 2005

Information portal of housing for seniors: Kaigo DB July 2006

42

Launch of Services 1/4

03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14

Home-delivered meal search site: Lifood Nov. 2013

03/15

User review site regarding nursing care facilities: Tonari no Kaigo Apr. 2014

Com for managers of nursing care facilities: Kaigo Must Feb. 2015

4-1


Nursing/medical care seminar information: Meducation Apr. 2012

Information portal for hospital office managers: Jimcom Sep. 2014

Information portal for hospital management: GALENUS May 2013

Home-visit pharmacy DB: Homon YakkyokuNavi Dec. 2014

Regional partnership support in the nursing/medical segment: Chiiki Renkei ONE Nov. 2014

Drug and medicine DB for pharmacists: Cocoyaku Di-pedia May 2014

Med

ical

Car

e

Com for nurses and student nurses: Nurse-senka Community Aug. 2006

Publishing for nurses: Nurse-senka Books Aug. 2009

Com for pharmacists: Cocoyaku May 2009

Mail order/online sales of nursing goods: Pure Nurse Sep. 2011

43

Launch of Services 2/44-1

03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15


Car

eer

RAG for PT/OT/ST : PT/OT Jinzai-bank Sep. 2008

RAG for care managers: Care Jinzai-bank May 2003

RAD for newly graduated nursing care professionals: Kaigo Job Gakusei-ban July 2003

RAD for nursing care professionals: Kaigo Job Mar. 2004

Certification course information: Sikatoru Nov. 2003

RAG for nurses: Nurse Jinzai-bank Sep. 2005

RAG for pharmacists: Pharma Jinzai-bank Apr. 2007

RAG and RAD for doctors and pharmacists: M3 Career Agent Aug. 2006 Company split and succeeded to M3 career at the end of Dec. 2012

RAG for medical technologists: MT Jinzai-bank Sep. 2013

RAG for nutritionists: Nutritionist Jinzai-bank May 2012

RAD for nurses: Nurse-senka Kyujin-navi July 2006

RAD for newly-graduated nurses: Nurse-senka Shusyoku-navi Aug. 2009

Solution service for hospitals Apr. 2011

RAG for radiological technologists: RT Jinzai-bank June 2014

RAG for medical engineers: ME Jinzai-bank July 2014

RAG for childcare workers: CW Jinzai-bank Sep. 2014

Scholarship information portal: Kango Shogakukin-navi Oct. 2012

Launch of Services 3/4

RAG stands for Recruiting Agent RAD stands for Recruiting Ads

4-1

03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15


Com for nutritionists: Eichie June 2011

45

Hea

lthca

re

Q&A site on health: Narukara Dec. 2013

Glo

bal

(South Korea) Com for nurses: Nurscape Sep. 2011

(Taiwan) Chronic disease medicine delivery service: iHealth May 2013

(Australia) Medical bill e-claiming solution for hospitals: EHEALTHWISE Jan. 2014

Information portal of dementia: Ninchisho net Aug. 2011

(Sri Lanka) Doctor’s appointment service for patients: eChannelling June 2014

News column regarding pregnancy, childbirth and child-raising: Ixil July 2014

Information portal of end-of-life preparations: mirasona Dec. 2014

News column for active seniors: Lvly Sep. 2014

Information of genetic test: Navigene Mar. 2015

(Malaysia) Development/sales of system for clinic information: Centium Dec. 2014

Launch of Services 4/44-1

03/04 03/05 03/06 03/07 03/08 03/09 03/10 03/11 03/12 03/13 03/14 03/15


Recruiting Agent Service: Business Model

When a job seeker successfully changes jobs through SMS’ service, SMS receives a percentage of the job seeker’s estimated annual income from the service operator (e.g., hospitals and nurse care operators) as a commission.

SMS consultants

SMS website

Nurses (Job seekers)Hospital (Service Operators)

Introduce applicants

Job offer

【Example: Recruiting agent service for nurses, Nurse Jinzai-bank 】

Register on the website

Recruiting agent service

Consultation

Provide info. on

registered members

Post recruiting

ads

Pay commission for job placement service(calculated as a percentage of the job seeker’s

estimated annual income)

4-1


Recruiting Ads: Business Model

SMS receives from service operators (e.g., hospitals, nurse care operators, dispatching firms and recruiting agents) advertisement posting fees proportional to the number of job seekers’ applications.

SMS sales staff

SMS website

Request recruiting ads

【Example: Recruiting ads service for nurses, Nurse-senka Kyujin-navi】

Apply to job opportunities

posted

Post recruiting ads

Pay advertisement posting fee calculated in pro-rata of the number of applicants

（measured rate）

Provide information of the applicants

Provide job opportunity information

Nurses (Job seekers)Hospital (Service Operators)

4-1


Net sales and operating income increases in Q1 and Q4.

Seasonal Volatility of Net Sales / Operating Income

□Recruiting Agent Service Net sales are booked when a job seeker joins a company;

therefore, net sales/operating income increase in April (Q1) when personnel changes often happen

□Recruiting Magazine Net sales are booked when recruiting magazines are

shipped; therefore, net sales and operating profit increase in March (Q4) when the spring issue of recruiting magazines for nursing students are published

□Recruiting Ads Service Net sales are booked when a job seeker applies for a

recruiting ad; therefore, net sales and operating income increase in Q4 when companies publish recruiting ads toward the beginning of a fiscal year targeting job seekers likely to be motivated to change jobs

Businesses with Seasonal Volatility and Reason

Businesses whose net sales/operating incomeincrease in Q4

Both net sales and operating income increases significantly in Q1 and Q4

Seasonal Volatility

48

0

1,000

2,000

3,000

4,000

5,000

1Q 2Q 3Q 4QQ1 Q2 Q3 Q4

Net Sales

Operating Income

Quarterly Net Sales and Operating Income (FY03/15)（¥ million）

Businesses whose net sales/operating incomeincrease in Q1

4-1


Kaipoke

Renewed from insurance claim service to management support services in February 2014. Already started 37 new services, supporting operational efficiency and financial improvement

Insurance claim service

Insurance claim

system Management support service

(Improve operation efficiency And reduce costs)

Prior to February 2014

*1: There are around 100,000 nursing care service operators and 80% are small or medium-sized. It is crucial to make strong connections with them, since they will continue to serve an important role in the industry based on such industrial structure.

*2: Only representative services are shown.

Service Improvement

Human ResourceAccounting/Financing

General Affairs/Purchasing Establishment

・Recruitment・Attendance ・Welfare・Payroll calculation/depositetc.

・Insurance claim system・Accounting software・Factoring・Business management

etc.

・Purchasing・Insurance・Document storage etc.

・Market analysis・Task management・Funding consulting・Reform support

etc.

Starting in February 2014*2

・Tablet・Marketing・Bank transfer・Document Sharingetc.

4-1


Expenditure of long-term care insurance has doubled during each decade. Markets that are not covered by long-term care insurance are also growing.

Nursing Care Market and Relating Market Size (in 2010 or 2011）*2Expenditure of Long-Term Care Insurance Trend*1

*1：Ministry of Health, Labour and Welfare (including user-charge. Last update was ¥8.8trillion in 2012)*2：Welfare equipment: Japan Assistive Products Association(JASPA); others: Fuji-Keizai / Data in 2010 or 2011

2000

7.8

3.6

16.1

×2

×2

2010 2020

Grant for long-term

care payment7.8

Foodfor seniors

1.0

Housing for seniors

3.0

Welfareequipment

1.1

Safetymanagement

0.3

Expendablesfor nursing care

0.3

External Environment / Nursing Care

(¥ trillion) (¥ trillion)

4-2


Medical expenses have increased. Suffering from shortage of nurses although the number of nurses has increased.

Number of Working Nurses / Effective Ratio of Job Offers to Applicants*2Medical Expenses Trend*1

*1：Ministry of Health, Labour and Welfare (Last update was ¥39.3trillion in 2013)*2：Effective ratio of job offers to applicants: Ministry of Health, Labour and Welfare

Number of working nurses: Japanese Nursing AssociationNumber of 2012 is estimated based on average rate of increase during the last 3 years

15

20

25

30

35

40

45

50

2000年 2010年 2020年

37

29

47

2000 2010 20200.00

1.00

2.00

3.00

4.00

0

400

800

1,200

1,600

'00年 '03年 '06年 '09年 '12年

# of nurses(million）effective ratio of job offers to applicants

1.54million

1.16million

+8

160

120

80

40

0

External Environment / Medical Care

3.13

1.05

+10

(¥ trillion)

‘00 ‘03 ‘06 ‘09 ‘12

1.6

1.2

0.8

0.4

4-2


0.00

0.40

0.80

1.20

1.60

2.00

2.40

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

'11年3月期 '12年3月期 '13年3月期 '14年3月期 '15年3月期

0.00

1.00

2.00

3.00

4.00

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

'11年3月期 '12年3月期 '13年3月期 '14年3月期 '15年3月期

52

Continuous shortage of both nursing care professions and nursing professions

Medical Care SegmentNursing Care SegmentTransition of effective ratio of job offers to applicants for Nursing Care Professions *1

Transition of effective ratio of job offers to applicants for Nursing Professions *1

*1： Ministry of Health, Labour and Welfare, general employment placement situationThe mean of numbers for the 3 months in each quarter. Q4 FY03/15 is the mean of numbers of January and February

NursingProfessions

Industry Total

Nursing CareProfessions

External Environment / Effective Ratio of Job Offers to Applicants in Occupational Categories

Industry Total

FY03/11 FY03/12 FY03/13 FY03/14 FY03/15 FY03/11 FY03/12 FY03/13 FY03/14 FY03/15

4-2


Global market is extremely attractive as it is larger than the Japanese market and future progress in the aging population is expected.

External Environment / Global

*1: Statistic Bureau, Ministry of Internal Affairs and Communications and the United Nations. Seniors=age 65 and above

20102020

*2: ASEAN, Taiwan: IMF (Written numbers in 2020 is substituted with 2018’s),Other countries: Data published by Goldman Sachs

Taiwan

Population and the Rate of Aging*1 (100 million)

13.4

13.98％

12％

12.213.9

5％6％

5.96.5

6％7％

1.31.2 29％

23％

0.50.5

11％16％

0.20.2

11％16％

China

India

ASEAN

Japan

South Korea

GDP*2 (US$ billion)

China5,951

12,630

India1,678

2,848

ASEAN1,886

3,751

Japan5,511

5,224

South Korea1,015

1,508

Taiwan428715

4-2


Nursing Care Segment: Career-related Services

Provide recruiting agent service to care managers and PT/OT/ST, and recruiting ads service to all professionals

Provide services to large-sized service operators through recruiting ads and to small and medium-sized operators through Kaipoke

Services by the Size of Service ProvidersServices by ProfessionalsOur services in relation to nursing care professionals*1 Our services in relation to the nursing care operators structure*3

*1: Number of employees. Source: Ministry of Health, Labour and Welfare (2012). PT/OT/ST in nursing care and medical fields.*2: PT stands for Physical Therapist, OT stands for Occupational Therapist, and ST stands for Speech Therapist*3: Number of operators. Source: Estimate based on Ministry of Health, Labour and Welfare report (Jan 2014)

Provide recruiting agent serviceto care managers, PT/OP/ST

Large-sizednursing care

operators(20%, 29,000)

Small-sizednursing care

operators(80%, 117,000)Care

managers130,000

PT/OT/ST*2

140,000

Nursing care professionals

(Care workers, care helpers etc.)

1.45 million

Providerecruiting adsservice to all professionals

Provide recruiting agent serviceto all nursing care operators

(Service used in urgent need)

Kaigo Job（Recruiting ads）Service provided

Kaipoke(Recruiting adsas part of the management

support service)Serviceprovided

4-3


Medical Care Segment (Nurses): Career-related Services

Unemployed nurses

approx. 550,000 –650,000

Students approx. 70,000/year

Employed nursesapprox. 1.5 million

(increase by 20,000 – 30,000/year)

150,000 – 160,000/year leave work*2

Our Services in Relation to Nurses’ Employment*1

*1: Sources: [Number of Students] Ministry of Health, Labour and Welfare; [Number of employed nurses] Japanese Nursing Association; [Number of nurses leaving work] Estimate based on Japanese Nursing Association document; [Unemployed nurses] Japanese Nursing Association.Students include prospective registered nurses and prospective associate nurses. Employed nurses include registered nurses, associate nurses, public health nurses and midwives.*2: Include those who changed jobs as a nurse, as well as others

For newly-graduatingnurses・Recruiting ads

For mid-career nurses・Recruiting agent・Recruiting ads・Employee retention support

For unemployed nurses・To be provided

(Number of employed nurses,etc.)

(Our services)

Provide recruiting agent and recruiting ads services to mid-career nurses and recruiting ads service to newly-graduated nurses

Provide matching services meeting the needs of nurses and service operators and services promoting employee retention

4-3


Nurse Recruiting Agent Service: Market Trends and Competitive Landscape

Room for further expansion of SMS’ nurse recruiting agent service.• Despite the increasing number of nurses, shortage of nurses is intensifying over the years.• Market leader in recruiting agent services, but share among all job seekers is 7%. SMS

expects to grow further.

Market Size of Nurse Recruiting Agent Service and SMS’ Market Share*2

*1: Ratio of job-offers-to-job-seekers: Ministry of Health Number of job seekers: Japanese Nurse AssociationRegarding the number of job seekers in 2012, it is an estimate based on the average growth rate of the past 3 years.

*2: The figures are all SMS’ estimate as of the end of March 2012.

SMS25-30%（Main

player）

Total number of nurse job seekers: 150～160K nurses/year

SMS7%

Total number of job seekers via nurse recruiting agent

services40 K nurses/year

Number of nurse job seekers via SMS’ nurse recruiting agent service

10 K nurses/year

Further growth

Further growth

Number of Working Nurses, Ratio of Job Offers-to-Job Seekers*1

0.00

1.00

2.00

3.00

4.00

0

400

800

1,200

1,600

'00 '03 '06 '09 '12

（Number of nurses : thousand） (Job-Offers-to-Seekers Ratio : times)

1,540

1,160

1600

1200

800

400

0

Increase in the active job opening to applicant ratio

＝ escalation of labor shortage

Expanding

3.13

1.05

4-3


Accumulation of past Received Order Sales(ROS) constitutes net sales ROS is the result of sales activities in one term, and regarded as the leading indicator of net

sales

ROS Formula

ROS＝NofC × Productivity × Unit price

・Number of Consultants(NofC):Number of sales representatives engaging in recruiting

agent service・Productivity:

Number of completed agreements between a job seeker and a company per sale representative per month

・Unit price: The mean of recruiting agent service fee

* Primary factors for productivity・Trend of recruitment order from companies・Degree of accuracy in the process to agreement

- Interview with job seekers- Setting interview between job seekers and companies- Decision making of job seekers after the interview

ROS and Productivity arethe result of sales activities

Sales＝ROS × DF - Cancellation - Refund

・Net sales：Booked when a job seeker joins a company・ROS：Recorded when a job seeker and a company agree

Not booked in financial accounting・Distribution factor(DF)：

% of ROS distributed to each future month・Cancellation:

Cancellation of the agreement between a job seeker and a company after recording ROSCancellation will be deducted from net sales

・Refund:When a job seeker quits within a certain period of time, SMS will refund part of the fee to the company

Cancellation

Agreement（ROS）

Join（Sales Booking）

Refund

6months or 12months

Sales Formula

Accumulation of past ROS constitutes net sales

Among factors written above, net sales, number of consultants, and productivity are disclosed

4-3 Sales formula for Recruiting Agent Services


・Short stay*3

・Specified facility*3

・Management of in-Home Medical Long-Term Care *3

Large- : 20%

Among services received at home, 117,000 small and medium-sized companies are targets. SMS holds a 12% share and intends to increase its market share by gaining membership in

line with the increase in number of companies.

Totalcompanies

13,00020,000

43,000

Target companies for medical prescription

service

29,000

Small and Medium-target companies for medical

prescription service（= Target of Kaipoke）

Member of Kaipokeand Potential

members

*1: Estimation form Ministry of Health, Labour and Welfare, Care payment costs fact-finding monthly report as of January 2014*2: Among Community based services, Nighttime home-visit nursing care and Day care for a Dementia Patient are our target*3: Kaipoke is incompatible for shot stay and specified facility, Management of in-Home Medical Long-Term Care in no target due to its drastically lower

needs for medical prescription service

189,000

147,000

Potential member companies: 103,400

Member companies as of Apr. 2015: 13,600(SMS market share: 12％, Location: 10,400）12%

222,000*1Total

no target

no target

Small and medium- : 80%

Target companies for medical prescription service

In-home Services

Community based services*2

Services at facility

Target Companies of Kaipoke

58

117,000 103,400

4-4


Global 1/3 *1

Company name Foundation Country Description of business

SMS VIETNAM CO.,LTD.

Apr. 2009*2 Vietnam SMS’s portion of ownership: 100%, consolidated subsidiary

system development of SMS’s services and maintenance of part of them

SMS Beijing CO., LTD. Sep. 2009 China SMS’s portion of ownership: 100%, consolidated subsidiary

Business development in nursing and medical care

SMS KOREACO., LTD. Jan. 2011 South

KoreaSMS’s portion of ownership: 80%, consolidated subsidiaryBusiness development in nursing and medical care

Senior Marketing System Korea Co,.Ltd.（old: NURSCAPE）

Sep. 2011*2 South Korea

SMS’s portion of ownership: 80%, consolidated subsidiaryOperating well-known online community（243,000 nurses among 300,000 uses the site),recruiting ads services, and e-leaning for nurses in South Korea

SMS Taiwan CO.,LTD. Jan. 2012 Taiwan

SMS’s portion of ownership: 90%, consolidated subsidiaryBusiness development in nursing and medical careInvited local knowledgeable people in nursing and medical care as management

SENIOR MARK-ETING SYSTEM SDN. BHD.

Jan. 2013 Malaysia SMS’s portion of ownership: 100%, consolidated subsidiaryBusiness development in nursing and medical care

iHealth May 2013*2 Taiwan SMS’s portion of ownership: 47%, consolidated subsidiary

Delivering chronic disease prescription drugs to nursing care facilities and patients

SENIOR MARK-ETING SYSTEM ASIA PTE. LTD.

July 2013 SingaporeSMS’s portion of ownership: 100%, consolidated subsidiaryResponsible for overseas businesses, investment into overseas companies, and business development in Singapore

SMS PHILIPPINES HEALTHCARE SOLUTIONS INC.

Nov. 2013 Philippine SMS’s portion of ownership: 99.995%, consolidated subsidiaryBusiness development in nursing and medical care

*1: As of end of March 2015 *2: Investment (not foundation)59

4-5


Global 2/3 *1


PT. SENIOR MARKETING SYSTEM INDONESIA

Dec. 2013 Indonesia SMS’s portion of ownership: 100%, consolidated subsidiaryBusiness development in nursing and medical care

SMS Shanghai CO., LTD.

Dec. 2013 China SMS’s portion of ownership: 100%, consolidated subsidiaryBusiness development in nursing and medical care

EHEALTHWISE SERVICES PTY LTD Jan. 2014*2 Australia SMS’s portion of ownership: 100%, consolidated subsidiary

Medical bill e-claiming solution for hospitals

SENIOR MARK-ETING SYSTEM (THAILAND) CO., LTD.

Apr. 2014 Thailand SMS’s portion of ownership: 100%, consolidated subsidiary since Apr. 2014Business development in nursing and medical care

eChannelling PLC Oct. 2013*2 Sri Lanka SMS’s portion of ownership: 87%, consolidated subsidiary since June 2014Doctor’s appointment service. Listed on CSE.

Centium Software Sdn Bhd*2 Jan. 2015 Malaysia SMS’s portion of ownership: 87%, consolidated subsidiary

Development/sales of hospital information system

Luvina Software Joint Stock Company July 2012*2 Vietnam

SMS’s portion of ownership: 21.5%, Equity Method Affiliated CompanySystem/software development. Securing development resources and collaboration with SMS VIETNAM are the purpose of takeover.

HSP*3 Nov. 2013*2 Vietnam SMS’s portion of ownership: 33.4%, Equity Method Affiliated CompanyProviding hospital management system

*1：As of end of March 2015 ＝Companies founded or taken over, or consolidated in March 2015*2：Investment (not foundation)*3：VIET NAM HIGH TECHNOLOGY SERVICES AND SOLUTIONS PROVIDING JOINT STOCK COMPANY

60

4-5


Global 3/3 *1


PT.INFOYASA MEDITAMA SEJAHTERA

Apr. 2013 Indonesia SMS’s portion of ownership: 50%, unconsolidated associated companyJoint venture with CORFINA

PT.MEETDOCTOR July 2013*2 Indonesia SMS’s portion of ownership: 60.8%, unconsolidated subsidiaryOnline communication platform where end users consult doctors on healthcare

Time Creation Limited（FindDoc） Aug. 2014*2 Hong Kong SMS’s portion of ownership: 60.8%, unconsolidated subsidiary

Operating FindDoc where end users search doctors

HelpingDoc Private Limited Sep. 2014*2 India SMS’s portion of ownership: 33.4%, unconsolidated subsidiary

Doctor’s appointment service

This Source (Pvt) Ltd Jan. 2015*2 Sri Lanka SMS’s portion of ownership: 86.7%, unconsolidated subsidiaryPublishing magazine for health care providers

*1：As of end of March 2015 ＝Companies founded or taken over, or consolidated in March 2015*2：Investment (not foundation)

61

4-5


Number of Employees

Shareholder Composition*1

[as of March 31, 2015]

Number of stock holders3,054

Number of employees and its breakdown as of March 31, 2015

Other

62

32%

3%

3%

13%

30%

7%

11%

Employees (consolidated) 977SMS CO., LTD. 224SMS Career CO., LTD. 395

Subsidiaries and Sub-subsidiary 358

Japan 182

Global 176

FounderDirector, Employees, Shareholders’ meetingTreasury stockInvestors in Japan

Individual InvestorsGlobal Investors

Other

*1：This Graph shows ratio of number of stocks

4-6


These materials contain forward-looking statements, including estimates, projections, and statements related to businessoperations of SMS CO., LTD. (hereinafter referred to as the “Company”).The forward-looking statements are based on current expectations and assumptions in light of the information available tothe Company as of March 31, 2015 and are subject to significant risks and uncertainties. The results or events predicted inthese forward-looking statements may differ materially from actual results or events.As a result, we cannot guarantee that any forward-looking statements will materialize nor do we undertake any obligation toupdate or revise publicly any of these forward-looking statements.

For any inquiries on the materials, please contact below:

Corporate Planning Department

E-mail: [email protected] Phone: +81-3-6721-2403

Caution on Forward-Looking Statements

63

SMS CO., LTD. FY03-15 Presentation material for IR

Business

Transcript of SMS CO., LTD. FY03-15 Presentation material for IR